☕️ KL's thriving (wrong) business - RM118 mil drug seizure in Q1 2025, up 6x yoy

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

261 – The Royal Malaysian Police are addressing a surge in reports concerning religious insults, highlighting a sensitive issue gripping the nation. A significant portion, 150 reports, target a single preacher, while 73 relate to a radio presenter’s case. Additionally, 38 reports involve two individuals accused of insulting Islam in separate videos. This high volume of complaints underscores the heightened tensions surrounding religious discourse and the police's commitment to investigating these sensitive matters.

230,000 tons of missing rice – Japan's rice market faces a perplexing shortfall, with collection agents reporting a deficit of this amount despite an increased harvest. While farmers produced 180,000 tons more rice last year, a complex distribution system, involving agents and wholesalers, obscures the reason for the missing supply. The agricultural ministry is struggling to reconcile the discrepancy, leaving the nation's staple food market in a state of uncertainty.

10 years – A stark disparity in life expectancy, with the richest 1% of Americans living a decade longer than the poorest, underscores the growing impact of wealth and education on cardiovascular health. A study in The Lancet Regional Health — Americas reveals that the top 20% of high-income, college-educated Americans experience significantly lower rates of heart disease, a divide that has widened over the past 20 years. Analysing data from nearly 50,000 adults, the research highlights a worsening trend compared to other high-income nations.

Together with Bursa Malaysia

Thinking of a new adventure?

The Futures Trading Apprenticeship Programme (FTAP) is back for its 4th intake! 🚀 Through previous intakes, 22 ambitious individuals kickstarted their professional trading careers in the dynamic Malaysian derivatives market.

They learned the ropes from the ground up, thanks to the hands-on experience and guidance from seasoned professional traders that FTAP offers.

Apply here now before 13 Apr 2025.

3. IN MALAYSIA 🇲🇾

Putra Heights post-explosion 

Another Putra Heights in the making? 
A community garden in USJ17, Subang Jaya, has raised safety concerns after it was found to have encroached onto land designated for a gas pipeline. What began as a small planting effort has reportedly expanded beyond its original boundary, despite warning signboards, and is now visible from Jalan USJ17/1. The issue gained urgency following a recent gas pipeline fire in Putra Heights, with residents and students having long used the area as an informal shortcut between USJ17 and USJ13. Local platform SJ Echo has called for the pipeline area to be fenced off to prevent further trespassing. While urban greenery should be encouraged, it shouldn't come at the expense of public safety especially when critical infrastructure is involved.

Putra Heights residential losses: RM65.4 mil 
The aftermath of the gas pipeline fire in Putra Heights caused an estimated RM65.4 million in residential losses, affecting 437 homes, 81 of which were razed (structural damage >40%), 81 partially destroyed, and 57 damaged without burning. Prompt action by emergency responders and residents helped save property worth around RM285.9 mil. Recovery efforts, now led by Deputy State Secretary Johary Anuar, include repairs to homes and infrastructure, with 151 houses deemed safe for return. Only 20% of affected students resumed school despite transportation support, reflecting ongoing trauma. The state will provide RM500 aid to each of the 265 affected students.

Bungalow near blast site listed for auction at half price
A luxury double-storey bungalow in Putra Heights has gone viral after being listed for auction at RM3.33 mil, half its original RM6.7 mil valuation. Set on a 15,604 sq ft freehold plot with a built-up area of 11,801 sq ft, the home includes a basement and private swimming pool. Though located just a road away from the gas pipeline explosion that damaged 237 premises, the bungalow remains structurally intact. The auction is set for Apr 30, with netizens speculating the blast may further depress the price. In a market where perception heavily influences property value, even undamaged luxury homes can become collateral in the court of public opinion.

Malaysia disputes US tariff claims, warns of economic impact from retaliation
Malaysia has disputed the United States’ claim of a 47% average tariff on US imports, with Investment, Trade and Industry Minister (MITI) Tengku Zafrul Aziz stating the actual figure is closer to 5.6%. The inaccurate calculation, led to an unjustified 24% retaliatory tariff on Malaysian goods, prompting Malaysia to seek clarification while refraining from immediate countermeasures. The government’s current measures:

• Activated the National Geoeconomic Command Centre (NGCC) to assess sectoral impacts and may revise its 2025 GDP forecast of 4.5-5.5%. PM Anwar Ibrahim will convene a second NGCC meeting.

• Tengku Zafrul will chair a special ASEAN economic ministers’ meeting on Apr 10, followed by an ASEAN leaders’ discussion on regional trade resilience.

• Meanwhile, Selangor MB Amirudin Shari will consult experts on mitigating the tariff’s effects, particularly on SMEs, though semiconductor exports remain exempt.

Drugs and drug-related

• KL drug seizures hit RM118 mil in Q1, exposing scale of narcotics trade
  Wrong business thriving in KL. Drug seizures in Kuala Lumpur surged to RM118 mil in the first quarter of 2025, a 6x increase from RM19.3 mil during the same period last year despite a slight drop in arrests. The total value has already surpassed 2024’s full-year figure of RM112.8 mil from 21,544 arrests. While the increased value of seizures suggests more high-level operations are being disrupted, it also points to the alarming scale and persistence of drug trafficking networks in the city. What’s happening? 

• Umno’s Donation Dilemma: No Questions Asked, Even From Pablo Escobar?

  Umno’s working secretary Mohd Sumali Reduan testified in court that the party would accept donations without investigating their source even hypothetically from Colombian drug lord Pablo Escobar so long as they were deemed genuine and aligned with UMNO’s constitution. His comments came during cross-examination in a RM19.5 mil civil suit filed by SRC International against UMNO, which received RM16 million and RM3.5 mil from then, PM Najib Razak in 2015. Sumali argued the responsibility lay with SRC’s directors, not UMNO, claiming the funds were used for community programmes. The case revolves around RM43.96 mil allegedly funnelled through Najib’s “slush fund.” While donations from Pablo Escobar would be a bit extreme, it certainly gives a whole new meaning to “money laundering,” doesn’t it?

BN’s candidacy for Ayer Kuning with a cultural edge
Barisan Nasional (BN) chairman Ahmad Zahid Hamidi has announced Yusri Bakir as the coalition's candidate for the Ayer Kuning state by-election on Apr 26. Yusri, a well-qualified educator and Tapah Umno secretary was selected from six shortlisted candidates. Zahid highlights his diverse background, including his wife’s Chinese heritage, as a potential advantage in appealing to a broader electorate. Zahid also noted that 46% of Ayer Kuning's voters are young, with many first-time voters, prompting BN to mobilise its youth and women's wings for targeted outreach. While Yusri’s multi-faceted appeal could resonate with a diverse voter base, his success will hinge on how well the coalition connects with the younger demographic in this crucial by-election.

4. AROUND THE WORLD 🌎

Tariff War: China escalation, EU negotiation

Trump threatens 50% extra tariffs for China
In response to retaliatory tariffs by China, US President Trump has threatened a further 50% tariff on China if the retaliatory tariffs of 34% are not withdrawn. The deadline for this is Apr 8, 2025, with the additional tariffs taking effect on the same day as the Liberation Day tariffs, Apr 9, 2025. Trump also threatened to terminate all talks and requested meetings with China, and announced that other countries who have requested meetings will see negotiations begin immediately. Previously, China had called the additional 34% tariff on Chinese goods from the Liberation Day tariffs an abuse, with a Chinese foreign ministry spokesperson stating that “threats and pressure are not the right way to deal with China”.

EU offers zero-to-zero
The European Commission also revealed it had offered a “zero-for-zero” tariff deal with the US to avert a trade war. The EU has also stated an open preference for negotiation, the bloc will not wait endlessly, promising that there will be retaliatory action and countermeasures set in place to avoid floods of diverted imports. The EU is also expected to produce a larger package of countermeasures by the end of April, in response to the tariffs set in place by the US.

Negotiation begins: Over 50 countries seek talks
Still, over 50 countries have directly contacted the White House to initiate trade talks following the imposition of the tariffs, even as Trump’s top economic advisers defended the tariffs as a strategic move to strengthen the US in terms of global trade. However, the Trump administration has not disclosed the countries on the list. Treasury Secretary Scott Bessent went on record claiming that the tariffs gave Trump “maximum leverage”, despite the uncertainty of the impact on the US economy. Bessent has also dismissed concerns about a recession, citing unexpectedly strong job growth in the US.

A very interesting read here on the 14 reasons why tariffs will not bring manufacturing back to the US.

Take a peek into the media empire of MrBeast
Jimmy Donaldson is a content creator who is a billionaire on paper and is the chairman and founder of a multi-category company called Beast Industries. Better known by his online persona of MrBeast, Donaldson is YouTube’s most-subscribed creator with over 380 million subscribers, he is also the head of a company that generated USD473 mil in revenue in 2024, up 114% year-on-year from USD221 mil in 2023. Moving forward, Donaldson has big plans for the company, which is forecasting a revenue of USD4.8 bil by 2029, with product launches, video game development, and the creation of in-house intellectual property for licensing across various merchandise.

Cybersecurity matters

• White House blames iPhone contact auto-suggest for Signal screwup
  The Trump administration is now blaming the iPhone’s auto-suggestion for the scandal that saw a member of the press accidentally added to a group on the messaging platform Signal, where there was a discussion about plans for an airstrike in Yemen. This follows an internal investigation conducted by the White House’s information technology office.

• Singaporean finance director almost scammed of USD499,000
  An impersonation scam using deepfake technology led to a company's finance director almost losing over USD499,000. Luckily, the amount was successfully traced and withheld by the Singapore Police Force’s Anti-Scam Centre with assistance from its Hong Kong counterpart. The victim was contacted via WhatsApp by a scammer impersonating the firm’s CFO, who instructed him to participate in a video conference with others in the company, including the firm’s CEO, who instructed the victim to transfer the amount to a money mule account. The people in the call were all impersonated using deepfake technology, according to police. The victim caught on when there was a follow-up request to transfer an additional USD1.4 mil, after which he notified the authorities.

Shorts

1. Pakistan appoints Binance’s CZ as crypto adviser

   Former Binance CEO Changpeng “CZ” Zhao has been appointed as an adviser to Pakistan’s Crypto Council, which was formed to oversee the country’s adoption of blockchain technology and digital assets. Zhao will be advising the body on cryptocurrency regulation, infrastructure, and adoption.

2. Belgium u-turns, will not be arresting Netanyahu

   Belgian PM Bart De Wever stated that, should his Israeli counterpart head to Belgium, Netanyahu would not be arrested. De Wever reasoned that the arrest of Netanyahu is “hardly feasible in terms of realpolitik”. This has drawn condemnation and criticism, with some saying Belgium was sacrificing its vital interest to support a genocide.

5. FOR YOUR EYES 📺

1. Warren Buffett - “Tariffs… they’re an act of war”

2. More on Buffett. Berkshire Hathaway’s cash holding soared to a record high of USD334 bil at end 2024. Impeccable timing, given what’s happening with the markets.

3. Enough of tariff stress. If you have watched the latest Snow White (bombed at the box office) and were, in the words of Trump, tremendously disappointed, then watch this version of Snow White - starring Samuel L. Jackson coz “I’m Snow White, motherf*ker”. If you want more laughs, read the comments. Btw, AI is getting mad.